We need to talk…
…about your business.
…or about your hobby.
Do you even know which one you have (and where you stand)?
Before we start, I want you to take a deep breath and let go of any stigma you have that's attached to the word “hobby”. In the fiber business industry, it's sometimes seen as a dirty word, so it's important that you try to break away from any biases that you already have.
The difference between a "hobby" and a "business"
Let's start with the difference between a “hobby” business and a “business” business (I'm not sure what else to call it but the point is that having a business can still be considered a hobby)…
If you have a HOBBY BUSINESS:
you create to bring yourself joy and fulfillment.
the things you make are for yourself first and foremost, but you hope others will love them, too.
you hope to make money beyond covering your expenses, but it's not essential.
If you have a BUSINESS BUSINESS:
you create specifically for the purpose of hitting an income goal (regardless of the amount of that goal).
the things you make are products/offers that you stand behind, but are first and foremost for your ideal customer.
you love the work but understand some things need to shift in order to meet your goals.
After reading those, where do you think your work falls right now? If you're like most business owners I work with, it's usually a combination of the two.
Most of the time, we are in a position where we have an income goal we WANT to meet, but we are mostly creating things for ourselves and hoping that others will love them, too.
Can you make an income if you turn your hobby into a business?
Here's the problem.
It's extremely challenging to make things for yourself and earn an income unless there's:
a genuine interest for those products among many other people.
only a few other businesses doing similar work.
enough of a profit margin built into your pricing that you don't have to sell a large volume of product.
a market willing to pay the prices you set.
It's really not as cut and dry as “just make products for others and you can make more money”, but that's the place to start.
You don't have to make your hobby into a "business" business
One thing I want to emphasize here is that it's OKAY to have a hobby business. In fact, it can be a bit freeing!
A hobby business has less pressure to make money above and beyond expenses, and more flexibility to make things that you absolutely love.
Maybe you'll tap into a market need you had no idea existed - but that's really something you can't count on (very much like going viral on social media).
In the same vein, a "business" business can have smaller income goals while trying to serve others.
You may be running your business to make extra money for your family, build your savings accounts, or put more money back into your community and causes you feel strongly about.
But the reality is that it's MUCH easier to make products for others based on market research and user input (aka an existing demand) than it is to make a product that YOU want and then try to convince others that they also want it.
In essence, you need to CATER to market demand instead of trying to CREATE market demand.
What you need to consider if you turn a hobby into a business
If you're considering turning your hobby into a business, here are three questions to ask first:
If you knew your core products would never meet your income goals, would you keep making/offering them?
What truly is the goal for having your business (for you, personally)? Money, fun, or something else entirely?
If you WANT to have a business business, but aren't running your current business this way, what are three ways you can start to shift your product development so that you're tapping into what your target market wants/needs?
If you do truly have income goals you want to hit, book a 1:1 call with me and I can help you figure out how to reach them. Trust me, I get it and I'm here for you.
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